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Incentive Pay in Workplace

In: Business and Management

Submitted By Perkinsr
Words 3633
Pages 15
December 6, 2012

Incentive Pay

This topic was picked as a local health organization is going to be implementing this for their employees in the 2014 fiscal year. They have decided after many years of debate to finally make the decision to include this when they do annual reviews to determine if the employee will receive an additional pay raise over the normal market percentage that they receive on a yearly basis. This is a new device that employers are beginning to use to coax employees to do more in their everyday functions than just what is required of them by their employer. There are several steps to implementing a successful incentive compensation program. The six steps mentioned here that are worth exploring further to make sure the process goes accordingly to help the organization to reach their goal of more revenue, increased patient satisfaction and increased motivation from employees. The process was written by D. Kevin Berchelmann of Triangle Performance LLC. 1. Determine what the plan intends to accomplish-Identify in detail what the desired conditions should be and the reasonable behaviors necessary to achieve them. It’s important to make sure that the organization analyzes the appropriateness for the environment for which the plan will be implemented and to make sure that the plan clearly states what it is that the organization wants, be specific as possible. 2. Determine Participants- Every employee is key component to making the plan a success. Making sure that no employee is excluded is important to the plan being implemented properly. Having an employee not present, meaning they are not interested in being part of the process can mean there could be a potential struggle in making sure the plan works. 3. Develop clear performance goals- These should be clearly measurable, supported by valid information as well as

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